Purchasing real estate in Turkey is an excellent opportunity for foreign investors to obtain Turkish residency and citizenship, as well as increase their income. Residential real estate in resort areas is a truly profitable asset that quickly pays for itself. Turkish housing is in demand among both renters and buyers. The constant rise in prices per square meter only confirms the profitability of the investment. Turkey offers a high return on investment, so investment volumes are growing rapidly every year.
Dynamics of real estate prices in Turkey.
In 2023, Turkey was named the world leader in real estate price growth. Eurostat confirms that real estate growth in Turkey is almost 20 times higher than in European countries! Furthermore, this statement is supported by the following data:
- By the end of 2023, the price of residential real estate increased by 110%;
- The ROI (return on investment) period has increased to 16 years;
- The average price of residential property in Turkey has exceeded $100000;
- The top three cities for foreign investors to buy real estate are Antalya, Istanbul, and Mersin.
The increased investment returns and rising prices for Turkish real estate are driven by long-term investment appeal and simplified buyer requirements. It's worth noting that investing in real estate from $400,000 allows you to obtain Turkish citizenship for your entire family.
Turkey Property Price Forecast for 2024
For several years now, property prices in Turkey have been rising faster than in any other country in the world. According to experts, property prices in Turkey will only increase further in 2024. This is due to the following factors:
- Rising construction costs. In Turkey, the cost of all construction sectors is rapidly increasing: labor, materials, legal permits, and so on. Consequently, prices for new buildings are also rising, as no one wants to operate at a loss. Furthermore, prices on the existing market are also rising in line with new properties.
- Construction is slowing. Rising prices are preventing developers from selling their properties quickly. Therefore, they begin construction on new projects only after the previous one is completed. It's now virtually impossible to see a major developer building several dozen residential complexes simultaneously. By the end of 2023, the number of issued construction permits had almost halved. This means the shortage in the real estate market will only worsen in 2024.
- Land value. Real estate prices are also rising due to rising land prices. After all, in Turkey's popular resort areas, there are practically no vacant development sites left. Furthermore, buying land is an excellent investment opportunity.
- The economic situation in the country. Despite the global crisis, investing in real estate is one of the most reliable investment instruments. These assets will never depreciate, and real estate can be sold if necessary. This means that the value of housing will continually increase.
Investment and profitability strategy for real estate in Turkey.
The yield rate always depends on the type of property and its location, as well as the class of housing, its views, the age of the housing stock, and the level of infrastructure development in the surrounding area. For investment, it's better to choose multifunctional residential complexes with higher quality construction and amenities than densely populated developments without a unique, original concept.
Another crucial factor in generating income from real estate is the rental period. For short-term rentals, choose properties within walking distance of the sea, close to shopping and entertainment facilities, and with access to historical landmarks.
If you plan to rent out your property long-term, you should choose a property with the following characteristics: good transport links, absence of tourist noise, and a high level of amenities in the area.
It's worth noting that the profitability of Turkish real estate will largely depend on whether the above criteria are considered when purchasing. The average yield on residential real estate for short-term rentals is 8-121% of the original price, while for long-term rentals it's 6-81% of the original price. Furthermore, significant capital gains can be realized by reselling the property.
The most profitable way to buy property is during the construction phase. Then, the price of an apartment will be 30-40% cheaper than the standard market price. Always keep in mind that property prices in Turkey increase by 15% annually, and have doubled since 2023.
At our webinar, you can gain even more information about investing in Turkey, assess key market trends and prospects for 2024, and explore real-life cases of successful investors.